Did you know that more than 80% of Americans were going broke? Are you one of them? Do you have multiple creditors leaving you several messages every day asking you for some money? You had no choice but to borrow money from family and friends because even the loan sharks won't lend you money even though their interest rates are outrageous? If you answered yes to one, some, or all of these questions, how did you get there? More importantly, what are you doing about it? Be honest with yourself! The first step toward recovery is admitting you have a problem.
You don't have to be ashamed about it and get all depressed.
Step off that bridge NOW!!! I was once in that exact, same situation.
When I got into university, everybody was offering me credit cards: major banks, department stores, gas companies, etc.
I had them all! I was never properly educated and just went crazy with all of this "free money".
BUT...
Reality caught up with me and it took me several years to get out of this mess.
Now get a pen and some paper, and take notes.
I am about to explain to you how to get out of this mess! Are you ready? And more importantly, are you COMMITED??? 1) Cut all your credit cards but one that you'll keep for emergencies for a while until save more money aside as a emergency fund (buying beer, eating out at restaurants, or purchasing the latest blockbuster DVD does not qualify as an emergency, sorry!); 2) Make a budget and learn how to live on cash: Most people have no idea where their money is going.
They do not budget; they withdraw money from different ATM's everyday until their bank account runs dry, often paying crazy service charges because they are using ATM's from other banks.
Then they withdraw cash advances from their different credit cards until their cards are maxed out.
You need to calculate what your fixed expenses (electricity, phone, rent/mortgage, loans, etc) and what your variable expenses (food, entertainment, clothing, etc) are.
The latter you can control and cut down.
3) Before spending money on something, wait a day or two and ask yourself these two questions: Do I really need this? How will this make my life better? We often make impulsive buying decisions because we're bombarded with advertisement programming us that we'll be so miserable if we don't buy that latest widget here and now.
4) Once you've established a budget and learned to live on cash, make plans to reimburse the credit cards with the highest interest rates first, then your family and friends.
5) Make more money! Multiply your streams of income! Beside your day job, what else is generating revenues for you and your family? Most people are spending much more money that they are making.
Be smart; realize that you have it within yourself to make much, much more money than you are making right now.
Be smart and try to find ways to leverage your time because you do not want to work 80 hours per week.
That's it for today.
Start now and be focused! You can do it! You deserve better!